Authorization For Foreign Investment In The Tourism Industry

Permission from the Secretary of Foreign Relations is required for the formation of 'Fideicomisos' or real estate bank trusts to invest in this industry. These permission may be given under the following conditions.

When Fideicomisos are awarded to foreign investors.

Real estate obtained through the fideicomiso must be used exclusively for:

The fulfillment of tourist activities specified.

When dealing with suburban property, only when:

The total area does not exceed 20 hectares (Approx. 50 acres) or

If larger than 20 hectares, when special permission is granted.

When tourist activities are under the following categories and are either constructed, sold, rented, established exploited or operated.

Parks and subdivisions, hotels and houses.

Hotels, motels, boarding houses and other lodging facilities including campgrounds and facilities for motorhomes.

Establishments to be used as restaurants, cafeterias, bars, and general businesses.

The Secretary of Foreign Relations will issue permits for fideicomisos which imply the transference of a property held in trust and is to be renewed as long as a trustee- buyer and the trustee-seller are not the same person.

Special permissions must be obtained from the National Commission for Foreign Investment prior to obtaining major participation in the following activities:

Maritime transportation services

Rental services involving vessels of small craft for use in tourism.

Foreigners looking forward to investing or starting a business in Mexico are required to get a business visa from this Consulate General of Mexico to enter the country.

The establishment of a business in Mexico does not automatically allow the foreigner to live permanently in Mexico or to work there. Thus, he or she will require a special permit from the ministry of the interior (Secretaría de Gobernación) in order to live or work in Mexico.